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Fundamentals of Operations Management, 4/e

Mark M. Davis, Bentley College
Nicholas J. Aquilano, University of Arizona
Richard B. Chase, USC, School of Business

Facility Decisions Location and Capacity

Multiple Choice Quiz


1	The achievement of maximum capacity denotes a highly efficient process.
		A)	True
		B)	False


2	A GIS is a graph of a geographic area displaying demographics or other information to support decision making.
		A)	True
		B)	False


3	Factor rating systems are the least frequently used of the techniques presented for plant location analysis.
		A)	True
		B)	False


4	For manufacturers, the facility location problem can be categorized as factory location and warehouse location.
		A)	True
		B)	False


5	According to the authors, two reasons that capacity and location problems are interrelated are (choose the best answer):
		A)	Increased networking and information needs
		B)	The need for producers to locate near customers and the growth of the network firm
		C)	Legal requirements and safety requirements
		D)	Logistics and information needs


6	The best operating level is:
		A)	The maximum point of the cost curve
		B)	The level of capacity for which average unit cost is minimized
		C)	Maximum capacity
		D)	The level of capacity for which total cost is minimized


7	The capability to deliver what the customer want within a lead time shorter than the competitors is referred to as:
		A)	Process flexibility
		B)	Worker flexibility
		C)	External flexibility
		D)	Capacity flexibility
		E)	Plant flexibility


8	Long-range capacity planning should be the responsibility of:
		A)	Analysis
		B)	Middle management
		C)	Top management
		D)	Marketing management


9	Which of the following is NOT a method which is used in location analysis?
		A)	linear Programming-transportation model
		B)	best location method
		C)	cost analysis
		D)	center of gravity method


10	Flexible workers are typically:
		A)	Receive little training
		B)	Stay on task
		C)	Prefer standardized work assignments
		D)	Better educated


11	Which of the following is NOT a qualitative factor in location decisions?
		A)	Local infrastructure
		B)	Worker education and skills
		C)	Product content requirements
		D)	Exchange rates
		E)	Political/economic stability


12	A brick and mortar operation is
		A)	A facility that deals directly with the customer
		B)	A facility that deals indirectly with the customer
		C)	A facility that has no contact with the customer
		D)	Also known as a back-of-the-house operation

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